Ignas | DeFi on Warpcast

Ignas | DeFi pfp

Valuing L1s based only on fees is shortsighted. If that was the case, $TRX should trade higher than $ETH. But it's not. Decentralization (meaning security), dev activity, TVL, ecosystem maturity, tokenomics... all these factors matter. Opinions that ETH is dumping because fees are dropping as activity shifts to L2s are getting louder. Standard Chartered cut ETH price forecast from $10k to $4k because fees were outsourced to L2s. Sure, fees matter, but if they were the only factor, BTC would trade lower than ETH. But it's not. For some, ETH is money as pristine and yield-bearing collateral in DeFi (like Maker and Ethena). For others. ETH serves as a store of value differently from BTC. While BTC hedges against macro instability and money printing, ETH is a store of value in the digital economy. A stable macro environment and fiscal prudence risk BTC but not ETH.

6 replies

1 recast

10 reactions

Ignas | DeFi pfp

For those like me, ETH, SOL and other L1 tokens are productive assets. I use them to farm ecosystem token airdrops while benefiting from L1 price appreciation if the ecosystem expands. I know it's speculative, but it has nonetheless helped me outperform pure ETH spot price. Tron's $TRX is none of the above things even it generates higher fees. Many are likely bearish and selling ETH because of the low fees. However, this is a natural shift in the narrative from viewing ETH solely as digital oil to recognizing its value beyond just being a fee generating database.

2 replies

0 recast

3 reactions

woj pfp

or maybe trx should trade higher and is undervalued

1 reply

0 recast

1 reaction

Crypto Taboo Intern pfp

Crypto Taboo Intern

@cryptotabooteam

Fees tell part of the story. ETH’s value lives in its utility and credibility.

0 reply

0 recast

1 reaction

Fantomas7x pfp

no doubt , but huge incentives of Eth stakers from whales , not retailors. in addition, it could be changed partner by new sexy chads like Sol/sui/monad..

0 reply

0 recast

1 reaction

Zero pfp

None of that matters. Price matters only. Remember when eth becoming deflationary was supposed to send eth? Remember when eth etf was supposed to be bullish for eth like it was for btc? Remember when revenue was supposed to make eth moon? All that matters is how many people hold eth (the network effect). Thats it. Most people are short term holders. Btc has long term holders.

0 reply

0 recast

1 reaction

Osazzzz pfp

ETH is set to be the go to chain for stablecoin adoption and RWAs. However, I’m struggling to see how this will actually add value to Ether as an asset. Maybe if L2s adopt native roll-ups and have a decentralized sequencer, more fees can flow from L2 back to L1. In short, I’m super bullish on the ETH chain, but I’m feeling a bit uncertain about Ether as an asset.

0 reply

0 recast

1 reaction